file bankruptcy

These days of high unemployment and a weak economy, many good people have found themselves with much more month than money. Somehow, before they knew it, things became desperate. Filing for bankruptcy is never an easy decision. If you are considering bankruptcy or if you have been through it, there is probably just one question on your mind: “How quickly can I recover from bankruptcy?”There are many factors that contribute to the time you will spend mending your credit. The first step you should take is to carefully examine what you have coming in each month from any source. Tally up what you are obligated to spend for basic living. Then, get some help if you need it and create a workable cash flow budget that ensures that you can begin living within your means. Keep all of your receipts, especially those that show on-time payments.

Spend some time looking at all three of your scores from the major credit rating services. Look for any mistakes in balances owed or payment records. Correct any errors by challenging the incorrect reports and once you have set the record straight, continue to monitor these reports on a regular basis.

It may be helpful to reestablish credit when possible, but be very careful with big ticket purchases that have little or no resale value. In other words, buying a good used car on a monthly plan is preferred by lenders over consumers buying plasma TVs. The car has a greater resale value and can be easily sold if you hit a hard spot. A plasma TV might be entertaining, but loses a large percentage of its value the moment you walk out of the store.

In general, use the old adage: “If the blanket isn’t long enough, don’t stretch it out so far.” Use layaway plans instead of paying high fees and interest rates on sub-standard credit cards. Over time, fewer purchases, paid on time is more impressive than a large debt poorly serviced. The sooner you show your ability to make and keep commitments, the sooner your bankruptcy will be behind you.

Over all, most people will face a 3-5 year journey out of bankruptcy. It can be shortened by individual commitment to making payments on time and keeping an eagle eye on their credit reports. Once out of the bind you found yourself in, pat yourself on the back and commit to never going back to the courts for relief!

Want more help on Bankruptcy in your area? Contact the Advantage Legal Group for all mortgage modification and foreclosure assistance. Advantage Legal Group is your source for helping you file bankruptcy and then recouping and planning for the future. Call us for Mortgage Mediation and all questions regarding foreclosures and bankruptcy.